Reduction in taxes on the import of used vehicles, opposition to tax exemption on stationery
Published 1 hour ago | By Pak24tv
The federal government has decided to reduce taxes on the import of used vehicles and remove the age limit in the budget for the upcoming fiscal year 2026-27.
Briefing the Senate Standing Committee on Finance, Commerce Secretary Jawad Pal said that under the agreements made with the IMF, the ban on the import of old vehicles up to five years old will be lifted from July, provided that the vehicles meet environmental standards. The additional regulatory duty will also be reduced from 40 percent to 30 percent.
He said that this phased relaxation is part of the IMF’s conditions, which aim to provide equal opportunities to foreign sellers.
On the other hand, Director General Tax Policy Office Dr. Najeeb Memon revealed that the IMF has opposed any kind of tax exemption for the education sector. According to him, the IMF has rejected the proposal to remove sales tax on pencils, clippers, copies and other stationery items.
Federal Finance Minister Muhammad Aurangzeb also refused to give any tax concession to the beverage industry.
Regarding the national tariff policy, the Commerce Secretary said that the government intends to reduce the average import tariff to about 13.77 percent in the next fiscal year.
The National Assembly’s Standing Committee on Finance has approved amendments to the Customs Laws, under which the special judge will have the power to freeze the assets of the accused in cases of money laundering or illegal financial transfers.
